CLP.L Regulatory News (CLP)

4 January 2012

Brainspark plc

("Brainspark" or "the Company")

Conversion of Bond and

Completion of Mediapolis Sale

Brainspark plc (AIM: BSP), a fast growing international investment company, is pleased to announce that on 31 December 2011 a large bond holder agreed to convert its holding of £3.5million, plus accrued interest of £449,000 (a total of £3,949,000), into 11 million Brainspark new ordinary shares, at a price of 36 pence per share, a 38 per cent. premium to the current share price. Following this transaction, from the original £10 million convertible bond issued in May 2010, £3.86 million remains unconverted.

Allotment, subject to admission to trading on AIM, of the new shares is expected to take place on 31 January 2012, with the new shares admitted to trading on AIM on or around 15 February.

Additionally, as announced on 11 November, the Company received confirmation on 29 December from Sorgente SGR that the sale of the Mediapolis land has been agreed. Brainspark will shortly receive shares in the Michelangelo 2 Real Estate Fund for the amount of EUR 25 million. The amount received will be EUR 3 million lower than originally announced, but it has been resolved that VAT on the purchase, of EUR 5.25 million will now be paid by the buyer and not Brainspark. The Company may still incur a EUR 3 million penalty (for non-performance of some of the tasks included in the development, building and management contracts related to the new theme park), but it has negotiated a 2 per cent. success fee if the construction is delivered on time.

CEO and Chairman of Brainspark, Alfredo Villa, commented, "We are delighted to have reduced our debt position by a further £4 million and our intention in 2012 is to become debt free. Following the imminent receipt of the Michelangelo 2 shares from the Mediapolis sale we are now preparing our investment strategy for the coming year and we hope to provide further returns to shareholders as well as adding new assets to the portfolio."

-ends-

For further information please contact:

Brainspark plc +39 02 525 051

Alfredo Villa, Chairman and CEO

Arbuthnot Securities +44(0) 20 7012 2000

Antonio Bossi / Ed Groome

Leander PR +44(0) 7795 168 157

Christian Taylor-Wilkinson

About Brainspark Plc

Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing the interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. The company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions.